Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

Blackstone Signs Deal to Buy $1.6B in India Commercial Properties

2020/10/18 by Michael Cole Leave a Comment

prestige-cessna-business-park

Prestige Cessna Business Park in Bangalore

Less than half of a year after launching its second India REIT IPO, Blackstone could be heading for another trip to the bourse, as the US private equity giant signs a preliminary deal to purchase $1.6 billion in commercial property in the southern half of the country.

In a statement to the National Stock Exchange of India on Saturday, Prestige Group revealed that it had signed a non-binding letter of intent with entities acting on behalf of Blackstone funds for the sale of office, retail and hotel properties belonging to the Bangalore-based developer.

Yardi Vendor Cafe

Following the preliminary agreement, which also includes the sale of mall management and maintenance businesses belonging to Prestige, the two parties have entered exclusive talks regarding Blackstone’s potential acquisition of the assets or formation of joint ventures or partnerships.

The stock exchange notice did not mention monetary figures for the potential sales, however, local news reports citing sources familiar with the talks indicated that Blackstone had signed term sheets to purchase assets with an enterprise value of INR 120 billion ($1.63 billion).

Blackstone’s Mindspace REIT, a joint venture with India’s K Rajeha Corp, held a $476 million IPO in late July. Embassy Office Parks REIT, a joint venture between Embassy Group and Blackstone, became India’s first REIT with a $773 million 2019 IPO.

Focusing on Southern India

With the first-step agreement in place, the two parties will now enter into negotiations involving setting a final deal structure, as well as conducting due diligence, with a formal agreement expected by the end of November, according to local press reports. Contacted by Mingtiandi, Blackstone representatives declined to comment byond what was included in Prestige’s filing.

Irfan Razack

Prestige chairman Irfan Razack has some new friends with deep pockets

Earlier reports regarding the deal had estimated that Blackstone would be acquiring eight to 10 properties from Prestige, spanning a total of 15 to 20 million square feet (1.4 million to 1.9 million square metres), including both completed properties and projects under construction.

The hotels included in the prospective deal would yield a total of 336 keys, according to an account in the Deccan Herald. Prestige lists nine hospitality properties on its website, including assets under the Conrad, Sheraton and Oakwood brands.

Led by Indian billionaire Irfan Razack, Prestige Estates, the development division of Prestige Group has a collection of 10 operating shopping malls in Bangalore, Chennai, Mysuru, Mangalore, Hyderabad and other major cities in southern India. The company’s website lists eight office properties in Bangalore and one more in Chennai.

Proptech Registration Column

With their popularity as tech development locations, Bangalore and Chennai have seen their office rental values hold up comparatively well in 2020, according to agency research, with a report from Colliers International projecting that Bangalore office properties could be among Asia’s best performing over the coming five years.

Blackstone Buys Up More of India

Having achieved a pair of successful REIT IPOs over the past 18 months, Blackstone has continued to expand its role as India’s biggest real estate investor.

Local press reports indicate that the private equity giant has now invested some $8 billion acquiring and developing real estate in India, and a separate report today tied Blackstone to talks with Pune-based developer Panchshil Realty about a potential joint venture aimed at a REIT listing for the luxury specialist’s properties.

Proptech Registration Column

Blackstone has also taken aim at India’s logistics sector, with the company led by Stephen Schwarzman late last year committing $175 million to a joint venture with Mumbai-based real estate giant Hiranandani Group to build 12 million square feet of industrial properties in the country.

Also last year, the fund manager spent $620 million to acquire an office portfolio from Indiabulls Real Estate which gave it rights to commercial assets in Mumbai and India’s National Capital Region.

At the end of last month Blackstone’s Canadian-based rivals at Brookfield Asset Management made their own filing for an Indian REIT IPO, registering a draft document for a $599 million offering, just one day after receiving government approval to acquire a commercial portfolio from Bangalore-based RMZ Corp.

Related Stories

  • Blackstone Boosts Asset Portfolio in Run-Up to $1B India REIT IPOBlackstone Boosts Asset Portfolio in Run-Up to $1B India REIT IPO
  • Blackstone Buys Out India Office Portfolio for INR 44B, Checks Out Warehouse DealBlackstone Buys Out India Office Portfolio for INR 44B, Checks Out Warehouse Deal
  • Blackstone Said Buying Out Indiabulls Office Portfolio for INR 48BBlackstone Said Buying Out Indiabulls Office Portfolio for INR 48B
  • Blackstone, Embassy Prepare for $1B IPO of India’s First REITBlackstone, Embassy Prepare for $1B IPO of India’s First REIT

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Finance Tagged With: Bangalore, Blackstone, cm-India, daily-sp, Featured, highlight, India, Prestige Group

Proptech Registration Jumbo

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Yardi Commercial Cafe

Get Mingtiandi Delivered

Proptech Registration Column

Latest Stories

Ong Pang Aik Lian Beng

Lian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7M

Claire Cormier Thielke, Managin Director, Asia Pacific, Hines

How COVID-19 Ramped Up Proptech Adoption: Watch on MTD TV

managing director for fund management at GLP SG

GLP Raises Additional €500M for European Core Logistics Fund

GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate Headlines

Sponsored Features

CK Lau

Asia Pacific Logistics Sector: Increasingly Varied Sector Requires Multiple Approaches Sponsored Feature

COVID-19 Uncertainty Creates New Priorities for Real Estate Investors Sponsored Feature

Urban planning

Urban Placemaking with Big Data and Little People Sponsored Feature

Hines’ One Museum Place Celebrates One Year of a New Shanghai Landmark Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Top Stories

KKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate FundKKR Announces $1.7B Final Closing for First Dedicated Asia Real Estate Fund

Lian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7MLian Beng Consortium Buying Breadtalk HQ in Singapore for $88.7M

Blackstone Buying Disney Building in Singapore’s One North for $135MBlackstone Buying Disney Building in Singapore's One North for $135M

GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate…GLP Kicks Off Construction on Four UK Projects and More Asia Real Estate Headlines


Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Join the Mingtiandi Proptech Forum 2021
      • Asia Proptech 2021: COVID-19 Accelerates a Trend
      • Panel Talk: Tech Adoption in Logistics Real Estate
    • Promote Your Brand with the Mingtiandi Proptech Forum 2021
    • 2021 Mingtiandi Event Calendar
    • More Events
  • MTD TV
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Terms of Use
  • Privacy
  • Advertise
  • Join the Mingtiandi Team

We use cookies in accordance with our Privacy policy to provide the best user experience on Mingtiandi and to safeguard user data. By continuing to browse you consent to the policy. AcceptRefuse